A Project report

On

TO STUDY THE MARKET POTENTIAL OF

PROBIOTIC ORAL SOLIDS

Submitted in partial fulfillment of the requirement for the award of

POST GRADUATE DIPLOMA IN MANAGEMENT

Under the Guidance of

Mr. Subodh Chadha Mr.Govind Nath Srivastava

Regional Business Manager Faculty of Management
(Internal Medicine) ITS Management Institute
Aventis Pharma Ltd. Ghaziabad.

SUBMITTED BY
Deepak Tripathi
PGDM (2009-11 Batch)
ITS management Institute
Ghaziabad.

1
 CERTIFICATE

This is to certify that the project titled “TO STUDY THE MARKET POTENTIAL OF
PROBIOTIC ORAL SOLIDS” submitted by Mr.DEEPAK TRIPATHI, student of PGDM
(2009-11) for the partial fulfillment of the requirement of the POST GRADUATE DIPLOMA
IN MANAGEMENT, embodies the bonafied work done by him under my supervision. I also
declare that this summer training project is a result of his effort and no part of this project work
has been published earlier for any degree or diploma for any institute or university.

Date: Signature of the Mentor

2
3
 TABLE OF CONTENTS

Sl.No. TOPIC PAGE No

1 Acknowledgement 4

2 Preface 5

3 Executive Summary 6

4 Introduction 7

5 Objective of the Project 16

6 Company Profile 17

7. Product Profile 32

8. Methodology & Data Analysis 35

9. Conclusion 55

10. Findings & Recommendations 56

11. Limitation of the Study 58

12. Bibliography 59

13. Annexure 60

4
 ACKNOWLEDGEMENT

I dedicate this page to all those who have silently or actively left indelible mark
on my project report, so that they may give credits which richly
deserve.

Talent & capabilities are of course necessary but opportunities & right guidance
is two very important backups without which any person cannot climb the ladder
for success. Proper guidance and direction is required in order to achieve the
goal & making optimum of each & every opportunity. It is my great privilege to
have summer training in such an estimated business.

I am thankful from the core of my heart & express my feeling of gratitude

and acknowledgement to my “Project Mentor Mr. Subodh chadha(Regional
Business Manager), Mr.Pankaj Khanna, (Regional Training and development
Manager), HR Mr.Mashroor Lodi, Area sales managers Mr. Devajyoti Datta,
Sanjeev Rajpal and Scientific sales executive Mr.Kumar Gautam of Group
Sanofi-Aventis, Saket, New Delhi. Whose constant support and faith in me
always motivated me and their knowledge and brilliance has pulled me out
of doldrums in this project.

Mundane words are not enough to express our insufficient to express our
indebtedness towards “Mr. Govind Nath Srivastava Faculty, Department of
management and Prof.Durba Roy, Faculty, Department of Management, ITS

5
Ghaziabad” whose enormous assistance helped us in the completion of
project.

Deepak Tripathi

PGDM (09-11)

6
 PREFACE

In ITS , PGDM program has been designed keeping in mind the requirements of the companies
in the world at large. we, as students of ITS are required to undergo a summer internship in any
industry related their field of interest after the completion of 2 nd sem. Where the students have to
prepare a project report choosing a particular area of specialization. As the education of future
manager would be incomplete without any exposure to working in an organization, summer
training assignments are essential requirement for 1st year of PGDM course, and the objective of
training module is to help students understand the business environment well and equip us with
the work culture of industry in the present era.

I have done my summer training on “To Study the Market Potential of Probiotic Oral Solids”.
This period was marked by good experience of exposure and joy. The first benefit is that I have
got exposure and it has provided me with an opportunity to know the environment, the practices,
the systems and problems involved in retaining & increasing the market share of the
organization. During this time I was able to enhance my knowledge in the field of marketing.

This research was carried out in order to find out the market potential of Probiotic Oral Solids
in light of competitive environment. This would help me immensely in my future learning of
marketing.

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 EXECUTIVE SUMMARY

While making this project I got knowledge about the pharmaceutical market, in what way
medicines are marketed and hoe they form relation with their customers (doctors), chemist and
hospital. In this competitive environment how company can expand its market share.

The survey for hospitals (where neurologist can be found) done in DELHI, was necessary to
study the market potential of PROBIOTIC drugs. Through this project it is analyzed that what is
the consumption of probiotics in different region. After that research methodology followed in
the project is explained. Research is done in sequential manner. With the help of the analysis of
the data I find out the various finding which are explained in detail in the project. In this project I
mainly focused on the consumption of different brands of probiotic drugs.

8
 INTRODUCTION

OVERVIEW OF PHARMACEUTICAL SECTOR:

Accounting for two percent of the world's pharmaceutical market, the Indian pharmaceutical
sector has an estimated market value of about US $8 billion. It's at 4th rank in terms of total
pharmaceutical production and 13th in terms of value. It is growing at an average rate of 7.2 %
and is expected to grow to US $ 12 billion by 2010

Over the last two years the pharmaceutical market value has increased to about US $ 355
million because of the launch of new products. According to an estimate, 3900 new generic
products have been launched in the past two years. These have been by and large launched by
big brands in the pharma sector. And in the year 2005 Indian pharmaceutical companies
captured around 70% of the domestic market.

As in the present scenario, only a few people can afford costly drugs, which have increased
price sensitivity in the pharmaceutical market. Now the companies are trying to capture the
market by introducing high quality and low price medicines and drugs.

With the Product Patent Act, which came into action in January 2005, this industry is able to
attract big MNCs to India. Earlier these big firms had apprehensions in launching new drugs in
the Indian market.

At present, a large number of Indian pharmaceuticals companies are looking for tie-ups with
foreign firms for in-license drugs. GlaxoSmithKline is among the top choices for the firms that
wish to launch their product in India, but do not have any branch over here.

9
Contract research and pharmaceutical outsourcing are the new avenues in the pharmaceutical
market. Contract manufacturing is growing at a very fast pace and is estimated to grow to US
$30billion, whereas contract research is estimated to reach US$6-10 billion.

Indian multinational companies like Dr.Reddy's Lab, Cipla, Ranbaxy, etc have created awareness
about the Indian market prospects in the international pharmaceutical market. Approvals given
by Foods and Drugs Administration (FDA) and ANDA (Abbreviated New Drug
Application)/DMF (Drug Master File) have played an important role in making India a cost-
effective and high quality product manufacturer. Furthermore, the changes that took place in the
patent law, change of process patent to product patent, have helped in reducing the risk of loss
for intellectual property.

EXPORT IN PHARMACEUTICAL INDUSTRY

Pharmaceutical industry in India is showing a good resilience in the current phase of slowdown
both in the domestic and export markets. But export has become an important growth driver for
this industry in the recent years with more than 50% of the revenues coming from overseas
markets, particularly the U.S. and Europe. The Global recession has impacted India’s drug
exports only marginally, which is estimated to reach at $8.25 billion in the financial year 2008-
09 against the earlier estimate of $8.97 billion, according to the Pharmaceutical Export Council
of India – an organization set up by the Government of India. The growth rate of pharma exports
in 2008-09 was estimated at 23%. The industry, however, is expected to have slightly lower
growth in exports as revealed in a survey by the Federation of Indian Chambers of Commerce
and Industry (FICCI), one of the oldest industry chambers in the country with a nationwide
membership of more 1,500 corporates and 500 chambers of commerce and business
associations.. The FICCI survey has predicted a 16% increase in India’s pharmaceutical exports,
while most of the other industrial sectors expect a negligible growth or contraction during 2009-
10.

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Exponential growth for Indian pharma exporters is expected as many blockbuster drugs are
going off-patent. It’s estimated that over the next five years, the global pharmaceutical
companies are set to lose about $100 billion in sales due to blockbuster drugs going off-patent.
Indian companies are well poised to take advantage of this situation, owing to the competitive
advantage in generic drugs business. Basic production cost of drugs in India is up to 50% lower
compared with the established markets such as the U.S. and the costs of U.S. Food and Drug
Administration (FDA or USFDA) approved plants in India are 30%-50% lower.

Indian companies are continuously increasing their presence in the U.S., a $440 billion market
that constitutes around 47% of the global pharmaceutical market. In February 2009 alone, the
Indian companies (along with their subsidiaries) large and mid-sized, together have secured
approvals for 15 Abbreviated New Drug Applications (ANDAs).

Global rating agency Fitch Ratings Ltd., recently commented that the exports of low-cost Indian
generics are going to benefit due to the weak global economic environment and the weaker
rupee. Similar factors will also generate greater demand for low-cost contract research and
manufacturing activities (CRAMS) of the Indian firms.

DOMESTIC GROWTH

Drug sales to retail consumers in India grew by 9.8% to $6.98 billion (Rs.34,000 crore) in the
calendar year 2008, according to research firm ORG IMS Research, a joint venture of AC
Nielsen ORG-Marg and the U.K.-based IMS Health. The growth rate in 2008 was lower than
13.4% registered in 2007, due to a dip in the second half of 2008. These figures are compiled
from the data collected from wholesalers and don’t include the drug sales through hospitals
estimated at about $1.4 billion (Rs.7000 crore) per annum. After a decline of 1.2% in October
2008, the monthly retail drug sales has improved significantly in the following months with the
growth rate of 6.8% in November 2008, 13.3% in December 2008, 14.4% in January 2009 and
13.3% in February 2009, respectively.

11
The domestic market of Indian pharmaceutical industry is likely to register 12%-13% growth in
2009, only marginally lower than the earlier projections of 15% as an impact of macroeconomic
conditions, according to ORG IMS Research. The impact of macroeconomic factors is much less
on the Indian companies compared to the global peers. In the next 4-5 years, this industry is
expected to continue to grow at more than 10% to touch the $30 billion mark by 2020. In the
long term, the domestic consumption is expected to keep growing at a healthy pace, because
currently India’s healthcare spending is only 5.6% of the country’s gross domestic product
(GDP), which is among the lowest globally.

The domestic consumption of drugs is bound to increase as the necessity of drugs will increase
with time and they will become more affordable for a larger population. The necessity will
increase with the rising population and lifestyle disorders making people more vulnerable to
ailments such as cardiovascular diseases and diabetes. Secondly, medicines will become more
affordable to a larger number of people as the size of India’s 300 million middle class is rapidly
increasing and the income levels are also going up.

FRAGMENTED PHARMACEUTICAL MARKET

The domestic pharmaceutical market is quite fragmented with the top five companies
commanding only 22% market share. Cipla Ltd, has become the largest and the fastest growing
company among the top five companies, outclassing Ranbaxy Laboratories Ltd. Even the top 20
companies have a total market share of about 57% only in contrast to the global drug market
dominated by the 10 largest companies that account for about 40% of global sales.

12
M&A AND PRIVATE EQUITY DEALS

Pharmaceutical, Healthcare & Biotechnology was one of the busiest sectors on the deal street of
India in 2008. It was second in terms of total value with $5.57 billion, marginally below the
Telecommunication sector which had total transactions worth $5.78 billion, according to a report
of consulting firm Grant Thornton. In terms of volume, the Pharma sector had 57 deals, second
to 102 deals in Information Technology & IT-enabled Services sector. The $4.60 billion
acquisition of Ranbaxy Laboratory, India’s largest drug-maker, by Japanese firm Daiichi Sankyo
Co., Ltd was on the top of the table of India’s largest deals in 2008. Out of the total 57 M&A
deals in the sector, 17 deals were domestic.

Private Equity (PE) firms have also been active in the pharma sector in 2008 with total 22 PE
deals worth $337.41 million. The average PE deal size for the sector in 2008 was estimated at
$15.34 million, 20% higher than $12.82 million in 2007. Narayana Hrudayalaya, one of the
world's largest pediatric heart hospitals, which received a funding of $100 million, was on the
top of PE deals chart of 2008 for the sector

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 SWOT ANALYSIS OF INDIAN PHARMACEUTICA L INDUSTRY

STRENGTHS:

14
WEAKNESS

15
OPPURTUNITY

16
17
TREATS:

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19
 OBJECTIVE OF THE PROJECT

The objective of the project is:

o To study the prescription base of probiotic capsules

o Identify potential users of probiotic in oral solid formulation

o Study and analyze the level of presence of probiotic capsule-

ENTEROGERMINA in current market.

With an intention to facilitate the managerial decision making process in positioning of their
probiotic in different segment of users and optimally leveraging the market potential by
identifying the target population

20
 COMPANY PROFILE

SANOFI-AVENTIS

• 2009 sales: €29.3 billion

• A broad portfolio of pharmaceutical products:

Prescription medicines, consumer healthcare (OTC) and generics

• World leader in vaccines (Market share from sanofi pasteur internal estimates at end December
2009 based on a global presence, including 50% of sales from the Sanofi Pasteur MSD joint
venture)

• Presence across both traditional and emerging markets

• More than 100,000 employees in over 100 countries.

Focused on patients’ needs, sanofi -aventis offers a range of essential healthcare assets, including
a broad-based product portfolio and a presence worldwide.Sanofi -aventis products and services
are centered on patients.

Ambition: to become a diversified global healthcare leader.

Sanofi -aventis strategy is built around three priorities to reach its goals and ensure sustainable
growth:

• Increasing innovation in Research and Development

21
• Adapting Group structures to future challenges

• Seizing external growth opportunities.

Facts Showing Growth scenario:

Sanofi-aventis is a global healthcare company engaged in the research, development,

manufacture and marketing of healthcare products. Our business is diversified
and includes pharmaceuticals comprising Rx (prescription) drugs, consumer
healthcare business (over-the-counter / combined OTC and Rx drugs) and generics;
vaccines and animal health.

• 2009 net sales: €29,306 million, +6.3% versus 2008.

• 2009 adjusted EPS excluding selected items: €6.49, +18.2% versus 2008 or +13.1% at
constant €/$ exchange rate.
Pharmaceuticals business
Sanofi-aventis' pharmaceuticals business focuses on six therapeutic areas: diabetes,
oncology, thrombosis, cardiovascular diseases, central nervous system (CNS) and internal
medicine.

• 2009 net sales of the pharmaceuticals business: €25,823 million, +3.7% versus 2008.
The Rx drugs activity counts 8 flagship products in 2009 : Lantus®, Lovenox®, Plavix®,
Taxotere®, Aprovel®, Eloxatin®, Apidra®, Multaq®.
Flagship products

22
 Flagship products

Change at constant
Millions of euros 2009 net sales
exchange rates

Lantus® 3,080 +22.5%

Lovenox® 3,043 +8.8%

Plavix® 2,623 +0.2%

Taxotere® 2,177 +6.1%

Aprovel® 1,236 +4.7%

Eloxatin® 957 -34.7%

Apidra® 137 +38.8%

Multaq® 25 -
Note: Worldwide presence of Plavix® is €6,782 million, +6.2%. Worldwide presence of
Aprovel® is €2,012 million, +1.7%.

Sanofi-aventis also has a significant presence in consumer healthcare business, in various

product categories.
• 2009 net sales of consumer healthcare: €1,430 million, +26.8% versus 2008.
In addition to Rx drugs and consumer healthcare, the pharmaceutical business
comprises generics.
• 2009 net sales of generics: €1.012 million.
The turnover of the generics activity approximately tripled compared to 2008, mainly
reflecting the consolidation of Zentiva, Kendrick and Medley with organic growth.

23
Sanofi Aventis

Sanofi Aventis was formed in 2004 when Sanofi-Synthélabo acquired

Aventis. In early 2004, Sanofi-Synthélabo made a hostile takeover bid worth
€47.8 bn for Aventis. Initially, Aventis rejected the bid because it felt that the
bid offered inferior value based on the company's share value. The three-
month takeover battle concluded when Sanofi-Synthélabo launched a
friendly bid of €54.5 bn in place of the previously rejected hostile bid. French
government intervention also played an active role. The French government,
desiring what they called a "local solution", put heavy pressure on Sanofi-
Synthélabo to raise its bid for Aventis after it became known that Novartis, a
Swiss pharmaceutical company, was in the running.

Sanofi-Synthélabo

Sanofi-Synthélabo was formed in 1999 when Sanofi (former subsidiary of

Total) merged with Synthélabo (former subsidiary of L'Oréal). The merged
company was based in Paris, France.

Connaught Campus

The Canadian operations of Sanofi-Aventis began as Connaught

Laboratories/Connaught Medical Research Laboratories of the University of
Toronto from 1914 to 1972. It was purchased by federal government's
Canadian Development Corporation and later privatized. Sold to the French
Institut Mérieux in 1989 and renamed Pasteur Merieux Connaught. A
series of mergers would follow and the Canada unit was renamed
"Connaught Campus" of Aventis Pasteur. It is now the Canadian unit of
Sanofi Pasteur and part of the Sanofi-Aventis empire.

24
Aventis
Aventis was formed in 1999 when Rhône-Poulenc S.A. merged with Hoechst Marion
Roussel, which itself was formed from the merger of Hoechst AG with Roussel Uclaf and
Marion Merrell Dow. The merged company was based in Schiltigheim, near Strasbourg,
France

Sanofi-Aventis in INDIA
In India, sanofi-aventis operates through two entities - Aventis Pharma Limited and Sanofi-
Synthelabo (India) Limited. Sanofi-aventis and its 100% subsidiary Hoechst GmbH, are the
major shareholders of Aventis Pharma Limited and together hold 50.12% of its paid-up share
capital. Sanofi-Synthelabo (India) Limited is a 100% subsidiary of sanofi-aventis.

Aventis Pharma Limited was incorporated in May 1956 under the name Hoechst Fedco Pharma
Private Limited. Over the years, its name was changed to Hoechst Pharmaceuticals Private
Limited, Hoechst India Limited and Hoechst Marion Roussel Limited. The shares of Aventis
Pharma Limited are quoted on the Bombay Stock Exchange and the National Stock Exchange.

In India, Aventis Pharma Limited has 1,840 employees. It has state-of-the-art manufacturing
facilities in Ankleshwar and Goa, where active pharmaceutical ingredients and formulations are
manufactured.

Sanofi-Synthelabo (India) Limited was incorporated in June 1996 under the name Sanofi Torrent
(India) Private Limited. Its name was changed to Sanofi-Synthelabo (India) Limited in May
2002. Sanofi-Synthelabo (India) Limited has around 275 employees.

The two companies have registered offices in Mumbai and zonal offices in Mumbai, Chennai,
Kolkata and New Delhi.

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KEY EXECUTIVE

Mr. Chris Viehbacher ,

Chief Exec. Officer, Managing Director,

Director and Member of Strategy Committee

Mr. Nigel Brooksby ,

Chairman of Sanofi-Aventis UK,

Managing Director of Sanofi-Aventis UK and Gen. Mang. of Group UK

Mr. Jermoe Contamine ,

Chief Financial Officer and Exec. VP

Mr. Gilles Lhernould ,

Sr. VP of HR, Member of the Management Committee

Mr. Steve Oldfield ,

Chief Exec. Officer of UK Operations,

Director of Commercial Operations - UK and Gen. Mang. of Sanofi - Aventis UK

26
 VISION OF THE CHIEF EXECUTIVE OFFICER

CHRISTOPHER VIEHBACHER,

CHIEF EXECUTIVE OFFICER

I’ve discovered very solid foundations and many under-appreciated assets that I want to talk
about. Most of our competitors say they want to reduce their reliance on small molecules in the
developed world. We’ve already done this. If you look at the geographic breakdown of our
sales, around a third is generated in North America, slightly more than 40% in Europe and a
quarter in other countries. We are already the leader in emerging markets, a clear area of future
growth. We are also leader in vaccines (1), with major products ready to address major public
health challenges. This business activity is less impacted by generics due to the significant
levels of expertise and investment required. And our consumer healthcare (OTC) business,
ranked sixth worldwide (2) is an excellent basis for further development.

Our strong financial position is another key asset in a time of global economic crisis. We have a
strong cash flow, giving us the strategic flexibility to find and seize new growth opportunities.
Sanofi -Aventis is well equipped to face the future. ”

Our ambition is to become a diversified global Healthcare leader, focused on patients’ needs”

Healthcare leader, focused on patients’ needs

27
 VISION AND MISSION OF SANOFI AVENTIS

CORPORATE GOVERNANCE:

.Since January 1, 2007, the roles of Chairman and Chief Executive Officer have been separated
to ensure that the succession of the Company’s General Management can be organized
seamlessly
in line with the corporate culture. On September 10, 2008, the Board of Directors decided to
replace the Group’s General Management to implement a new strategy. The Board therefore
appointed Christopher Viehbacher as Chief Executive Officer to replace Gérard Le Fur as of
December 1, 2008. The Chairman represents the Board of Directors, organizes and directs
the Board’s activities, and reports these at the General Shareholders’ meeting.He ensures that the
bodies he chairs, the Board of Directors and the General Shareholders’ meeting, carry out their
duties in an appropriate manner. The Chief Executive Officer heads the Company and acts as
its representative with respect to third parties. He enjoys extensive powers to act in the name of
the Company.

28
The Board of Directors

Sanofi-aventis is managed by a Board of Directors of sixteen members, eight of whom are

independent. The General Shareholders’ meeting held on May 14, 2008 appointed four new
Board members and reappointed nine others. The terms of office have been rotated so that three
new members will join the Board each year between 2010 and 2012. Jean-François Dehecq is
Chairman of the Board of Directors. Subject to the authority expressly reserved by law to the
shareholders meetings and within the scope of the corporate objects, the Board of Directors
deals with and takes decisions upon all issues relating to the proper management
of the Company and other matters concerning the Board.

The Committees

Four committees assist the Board in its deliberations and decision-making.

The Audit Committee

The Audit Committee comprises four independent Directors, two of whom qualify as
financial experts under the Sarbanes-Oxley Act. The Committee’s task is to continuously assess
the existence and effectiveness of the company’s financial control and risk control procedures.
Members:
Klaus Pohle (Chairman),
Jean-Marc Bruel, Robert Castaigne
and Gérard Van Kemmel.

On April 29, 2008 the Board of Directors decided to split the Compensation, Appointments
and Governance Committee into two separate Committees: the Compensation Committee,
and the Appointments and Governance Committee.

29
The Compensation Committee
The Compensation Committee comprises five Board members, three of whom are independent.
It is tasked to make recommendations and proposals on the various forms of compensation
to corporate officers.
Members:
Gérard Van Kemmel (Chairman),
Thierry Desmarest, Jean-René Fourtou,
Lindsay Owen-Jones and Gunter Thielen.

The Appointments and Governance Committee

The Appointments and Governance Committee comprises seven Board members, four of whom
are independent. They are tasked to make recommendations to the Board about potential
appointments of Board members or corporate officers, prepare the rules of corporate governance
that apply to the Company and to monitor their implementation.
Members:
Jean-François Dehecq (Chairman),
Thierry Desmarest, Lord Douro,
Jean-René Fourtou, Claudie Haigneré,
Lindsay Owen-Jones
and Gérard Van Kemmel.

The Strategy Committee

The Strategy Committee was set up on February 11, 2008 with a remit to analyze possible
strategic directions for the Company and to prepare the Board’s work on these issues.
Members:
Jean-François Dehecq (Chairman),
Christopher Viehbacher,
Uwe Bicker, Thierry Desmarest,
Jean-René Fourtou and Lindsay Owen-Jones.

30
7 MAJOR THERAPEUTIC AREAS OF SANOFI AVENTIS

Sanofi-aventis focuses its activities on 7 major therapeutic areas:

• Cardiovascular Diseases.
• Thrombosis.
• Oncology.
• Central Nervous System Disorders
• Metabolic Disorders
• Internal Medicine

• Vaccines

Ethics & Responsibility

Sanofi -aventis puts the patient at the heart of its business activities.

PERFORMING RESPONSIBLY

Sustainable development is an integral part of sanofi –aventis strategy, and is central to the
Group’s identity.
Sanofi -aventis places patients at the center of its business practices, its commitments to
employees and society as a whole, as well as its actions for the environment. Group policy is
today focused in four key initiatives. The first is Patient 21, highlighting the bond linking sanofi
-aventis with patients, patient associations and the public. People 21 addresses social
commitments and covers the company’s approach to both its staff and the communities where
the Group is located. The third initiative, Ethics 21, strengthens our commitment to ethical
business practices. And Planet 21 focuses on environmental performance, with the aim of
minimizing the impact of sanofi –aventis business activities so as to preserve both
the planet and the health of its inhabitants.

31
A shared culture of sustainability

These concerns are increasingly shared by colleagues worldwide, in particular through regional
and business activity networks. High-profit le actions such as Sustainable Development Week
and a new awareness raising module also help foster employee interest. The Group’s
commitment is also gaining visibility externally via a dedicated website and the publication of a
Group Sustainability Report. Listed in the sector’s primary indexes (FTSE4Good, ASPI
Eurozone® and Ethibel), the Group again featured in the Dow Jones Sustainability World Index
in 2008, and now features in the Access To Medicines (ATM) Index.

Working with patients

A major newcomer to the Patient 21 initiative, the sanofi -aventis central anti-counterfeit
Laboratory was opened in Tours in 2008, providing a high-tech weapon to combat a global
threat to public health and patient safety. Sanofi –aventis also continued its agenda for greater
access
to medicines for all. In the United States, where over 47 million people have no medical
coverage, the sanofi -aventis Patient Assistance Foundation provides sick people with free access
to treatments in a number of specific therapeutic areas such as oncology. In 2008, the Foundation
joined the National Association of Free Clinics that provides low-cost or free health care.

Aligning with market changes

For the sanofi -aventis workforce, the year’s main events were related to decisions about the
reorganization of the Company. Through the People 21 initiative, the Group introduced a
number of support measures to minimize the impact of these reorganizations on the workforce.
These include internal and external aid for career mobility; support for creating or taking over
enterprises, redeployment leave, and early retirement with a pension that is 100% funded by the
Company. Due to the impact of new healthcare policies in Europe, negotiations have also

32
been held to accompany the necessary reorganizations, notably in Germany and France.

Commitment to human rights issues

In the Ethics 21 initiative, the Group has introduced a set of policies in recent years to ensure
that human rights are systematically respected. This culminated in 2007 with membership of the
EDH (Entreprises pour lesdroits de l’Homme – Companies for Human Rights), comprising
seven international companies with a shared French culture This was created following
exchanges with the BLIHR (Business Leaders Initiative on Human Rights) and the French
section of Amnesty International. In 2008, sanofi -aventis partnered the International

“Enterprises and Human Rights” Seminar to commemorate the signing of the Universal
Declaration of Human Rights 60 years ago.

KEY FIGURE:

More than 100,000 patients were given access to free medicines in the us thanks to the sanofi-
aventis patient assistance foundation.

TAKING ACTION,WORKING FOR THOSE IN NEED

Reacting to humanitarian Emergencies

The Group coordinates response to humanitarian emergences in association with the relevant
local authorities and subsidiaries, and with partner Non-Government Organizations (NGOs).
In 2008, emergency actions were launched to deal with the earthquake in China, cyclone Nargis
in Myanmar, the catastrophic monsoons in India, serial tropical stormsin Haiti and Cuba, and the
conflict in the Democratic Republic of the Congo.They included donations of medicines and

33
vaccines, financial support from the Group and its employees, and post-emergency assistance
working alongside health authorities and NGOs such as Handicap International, Care, the Red
Cross, Aide Médicale Internationale, and Unicef.

Help local development over the long term

Working with its partners, sanofi –aventis organizes programs that meet vital needs by providing
support and distributing healthcare more equitably. In 2008, the Group coordinated 54 multiyear
support programs in 37 countries, as well as subsidiary-led sponsorship schemes. Some of these
pilot projects are based on sharing experiences between several countries. The “My child
matters” program, for example, is a unique scheme developed with the International Union
against Cancer, to improve care for childhood cancer in countries where pediatric oncology is
still only emerging. In 2008, this 16-country scheme was extended to five new countries.

A pilot program to fight diabetes in developing countries was introduced in Mali,in partnership
with Santé Diabète Mali,in Burundi, Kenya, Madagascar, Nicaragua,the Philippines, Thailand
and, most recently,in India alongside Handicap International.A new three-year partnership with

the NGO Santé Sud (Healthcare for the Southern Hemisphere) will focus on experiments inearly
screening, healthcare, and integration into the social and economic fabric formentally-
handicapped people in Lebanon,Tunisia and Algeria

Encouraging new initiatives and pooling experiences

A second call for projects went out in 2008 for the Group’s “Carrying out projects here and
abroad” program to provide support to employee volunteer schemes in different countries and
professions. By the end of 2008, 27 project proposers received corporate backing in 21 different
countries.

KEY FIGURES

34
To address vital needs whilst conforming to who guidelines,1.5 million boxes of medicines and
665,000 vaccine doses were donated in 2008 to people in need in 70 countries.

SWOT OF SANOFI AVENTIS

STRENGTH:
• Good market position of blockbuster drugs.
• Good French culture/background

WEAKNESS:
• Relative small market share (5 %) compared to Pfizer(10.9%)
• Same infrastructure in many countries.

OPPURTUNITY:
• Good Market Power.
• Economies of scale/ R&D
• Synergies in administration.
• Many developments cannot be financed without merger.

THREATS:
• Diseconomies of scale due to the broader organization and
complicated communications.

35
36
 PRODUCT PROFILE
History of Probiotic:
• Introduction:

The term "PROBIOTICS" was first introduced in 1953 by Kollath (see Hamilton-Miller et al.
2003). “Probiotics are live microorganisms which beneficially affect the host by improving its
intestinal microbial balance, inhibiting pathogens and toxin producing bacteria.”

probiotics

Some Definition of Probiotics:

o In 1989 Roy Fuller suggested a definition of probiotics which has been widely
used: "A live microbial feed supplement which beneficially affects the host by
improving its intestinal microbial balance".

o According to the currently adopted definition by FAO/WHO, probiotics are:

"Live microorganisms which when administered in adequate amounts confer a
health benefit on the host"

Lactobacillus (probiotics)

37
The original observation of certain bacteria was first introduced by Russian scientist and Nobel
laureate Eli Metchnikoff, who in the beginning of the 20th century suggested that it would be
possible to modify the gut flora and to replace harmful microbes by useful microbes.

Proteolytic bacteria such as clostridia, which are part of the normal gut flora, produce toxic
substances including phenols, indols and ammonia from the digestion of proteins. According to
Metchnikoff these compounds were responsible for what he called "intestinal auto-
intoxication", which caused the physical changes associated with old age.

Benefits:

o Managing lactose intolerance

o Prevention of colon cancer

o Improving immune function and preventing infections

o Helicobacter pylori

o Antibiotic-associated diarrhea

o Improving mineral absorption

o Preventing harmful bacterial growth under stress

o Irritable bowel syndrome and colitis

o Managing uro-genital health

Disadvantages:

There are also some disadvantages of Probiotic. Some of this are-

o In a therapeutic clinical trial conducted by M. Besselink and colleagues in The

Netherlands, the consumption of a cocktail containing genetically modified
strains of probiotic bacteria, increased the death rate of patients with acute
pancreatitis.

38
 o Some hospitals have reported treating lactobacillus septicemia which is a
potentially fatal disease caused by the consumption of probiotic by people with
lowered immune systems or who are already very ill.
Need of Probiotics:

Probiotics are something that not many people know or understand. Many people have
heard the word but do not really understand what they are. I want to help clarify what
probiotics are and what they are believed to do for the body.

Probiotics are living microorganisms that are believed to give health benefits to human if we
eat them. They help to restore the balance of the good bacteria in our stomach and raise
resistance to harmful germs. They aid in digestion and help create a protective barrier inside
the intestine. Many other health claims have been made such as, helping lower cholesterol
and blood pressure, preventing colon cancer, reducing inflammation, and many more.
Probiotics have not been studied enough to guarantee any of these claims but more and
more research is being conducted to try and help figure out the mystery behind probiotics. It
is a rising field of interest and it will be interesting to see what they find in the next 5 years!
Although the research is still going on they are nothing to shy away from while the studying
is being done. A great way to get probiotics is through yogurt. It is good and good for you to
help increase these friendly bacteria.

39
 RESEARCH METHODOLOGY

TYPE OF RESEARCH DESIGN: Descriptive Research.

SAMPLE SIZE : 260

SAMPLING PROCEDURE: Convenient Sampling.

SOURCE OF INFORMATION: Chemist and Internet.

SAMPLE MEMBER: Chemists of delhi

DATA COLLECTION

PRIMARY DATA:
It is collected through survey by personal interview using questionnaire instrument.

The Primary Data that I collected were the information which I received through survey.
This data gave me the most vital information for making the analysis of market potential of
Probiotic drugs.

No Secondary data is used in my research work.

40
DATA ANALYSIS:

East Delhi
In East Delhi 30 chemists were surveyed and their preference was known. By the analysis of the
data so achieved following information was extracted.

o 20 chemists replied Darolac capsule (27 respondents ranked it first or second) is the
most preferred brand and Bifilac is the second best .

o Distribution of Darolac caps and Bifilac is very good. RANK-1

F
R
E
Q
U
E
N
C
Y

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Sales:

In

o In the above diagram it can be seen that Darolac leads in sales as 138 strips are being
sold in a week.

o The chemists are not also the frequent seller of probiotics, mostly they get 3-5
prescription in a day.

o Doctors prescribe Darolac capsules generally for long duration.

o Chemists also recommend Darolac themselves and customers prefer to purchase it

because of its low price.

o There is no any scheme available in market.

o If we take Darolac capsules and Bifilac in conjugation then, these are covering more than
50% of current probiotic market.

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Prescription Base:
The prescription of the probiotic oral solids in East Delhi comes from the Consultant Physicians
and hospitals which is located in posh areas like Mayur Vihar.

The major prescribers are listed in this diagram-

o In this diagram we can see that the major prescriber of Probiotics are Dr.Dave and
Kukreja hospital.

o The prescriptions usually come from Consultant Physicians in this zone; the
Individual practitioner as well as the hospital based doctors.

o In hospital pharmacy only those brands are available which is commonly

prescribed by the associated doctors of hospitals.

43
 North Delhi
In North Delhi 45 chemists were surveyed and their preference was known. By the analysis of
the data so achieved following information was extracted.

Ranking Preference:

o Here also Darolac capsule is the most preferred brand.

o If we take a look on the diagram then we see that Darolac Capsule is leading at 2nd
position also as 16 chemists ranked 2 which is also showing the leading brand with
Bifilac and Vibact.

o In this zone Bifilac and Vibact have captured the probiotic market quite good as
compared to other zones.

o Some chemists of Mukherjee Nagar are unaware that Enterogermina caps are also
available in the market.

o One or two consultant Physicians in Pitampura, prefers Enterogermina Vials to adults

instead of oral solids.

44
Sales:

o In North Delhi Darolac caps is leader brand with sales of 188 stripes per week and
Bifilac (175 stripes) is 2nd most preferred brand.

o Vibact is on average position with sell of 119 stripes per week.

o In premium brands Econorm caps are leader in this segment with a sale of 340 capsules
per week.

45
Prescription Base:

The prescription of the probiotic oral solids in East Delhi mainly comes from the
Gastroenterologists and some major hospitals like Jaipur Golden hospital and Sunder Lal Jain
hospital.

o In this zone Gastroenterologist prefers more probiotic oral solids than other specialty
doctors.

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 West Delhi
In West Delhi 50 chemists were surveyed and their preference was known. By the analysis of the
data so achieved following information was extracted.

Ranking Preference:

o The no.1 preferred brand in this zone is also Darolac caps as 24 out of 50
chemists voted it. But if we take addition of 2nd most preferred brand then
Bifilac is most promising than Darolac.

o In premium brands Econorm Caps are preffered most at no.3 and 4 rank.

o Vibact and Prowell are also having some image in chemists’ mind.

47
Sales:

o Darolac and Bifilac here also the best sellers of probiotic oral solids.

o Vibact and Pre-pro have their own position at no.3 and 4 with good sales.

o In this zone the premium brand are also in flow of sales as compare to other zones. But
Enterogermina has its lowest sell in this zone.

48
49
Prescription Base:

o The prescription of the probiotic oral solids in West Delhi comes from the Consultant
Physicians in majority.

o Ayushman Hospital in Dwarka sec.-12 which is leading prescribers of probiotic oral

solids in this zone prefers good amount of premium brands like Econorm caps and
Darolac IBS.

50
 Central Delhi
In Central Delhi 45 chemists were surveyed and their preference was known. By the analysis of
the data so achieved following information was extracted.

Ranking Preference:

o Darolac and Bifilac here also the major preferred brand.

o Each brand have some good preference in this zone.

o Apart from Darolac and Bifilac the premium brands are leading with other brands.

o Enterogermina has some demand in this zone.

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Sales:

o Darolac(230 stripes) is the bestseller and the second best is Bifilac(182 stripes) ; sales are
given as per week basis.

o Vibact is 3rd best in sales with an average sell of 116 stripes per week.

o Avalability and prescriptions of premium brands are more than other zones.

52
Prescription Base:

o Sir Gangaram Hospital prescribes 18 probiotics prescription out of 45 which ratio is

highest in all zones of Delhi. It prescribes 40% of total prescription.

o Other hospitals are also prescribing frequently.

o In this area major doctors who prescribes Probiotic Oral solids, are Gastro (from
Gangaram hosp) and consultant physicians of other hospitals and private practitioner.

53
 South Delhi
In South Delhi 80 chemists were surveyed and their ranking preference was known. By the
analysis of the data so achieved following information was extracted.

Ranking Preference:

o Darolac capsules and Bifilac capsules here also the most preferred brand.

o The prescription of any brand comes in bulk in this zone that means in a particular area
all doctors are prescribing the same brand.

o Premium Brands like VSL3 and Econorm capsules have some good preference in this
zone.

54
Sales:

o Darolac in majority in this zone with a sale of 515 stripes per week by 80
chemists. second largest is Bifilac (304).

o Brands like Prowell and Providac have also a good amount of sale in this zone.

o Enterogermina is on 6th position according to sales which is best among any zone
in delhi.

55
56
Prescription Base:

o AIIMS(13) and Safdarjung Hospital(11) prescribe probiotic oral solids mostly in

this zone.

o Gastroenterologists prefers most in comparison to CP/GP.

o Hospitals/Institutions are in majority in this zone.

o The Gastroenterologists of Holy Family hospital prescribes Enterogermina, only

major source in south delhi.

57
 Whole Delhi
In this survey 245 chemists were surveyed in 5 zones of Delhi and their ranking preference was
known. By the compiling of all zone’s data so achieved following information was extracted.

Ranking Preference:

o Darolac is the most prefferd brand in each zone. Bifilac is a good preferred brand too.

o After these two brands the premium brands are leading in the market.

o In premium brands Econorm is the most preferred brand.

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Sales

o Saleswise Darolac with a sale of 1327 stripes by 245 chemist in various areas of
Delhi is best seller.

o In premium brands Econorm capsule and Darolac IBS are almost equal.

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Prescription Base:

o The major Hospitals/Institutions like Sir Gangaram Hospital, AIIMS, Safdarjung

Hospital are major prescribers of the probiotic oral solids.

o Gastroenterologists and Consultant Physicians are the major prescribers.

o In major hospitals Gastroenterologists prefers more probiotics.

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Major Antibiotic Brands:

Augmentin is the most preferred antibiotic brand prescribed along with the
probiotics. It alone captures approx 30% market and then Mox and Moxikind has 30% of market
share. In the rest 40% major brands are Ciplox, Oflox, Ceftum, Ornof etc.

61
 CONCLUSION

Probiotics, the new generation biotech drugs and dietary supplements developed from yeast or
lactic acid bacteria (LAB), is emerging as a major opportunity in the domestic and international
markets. The market for probiotic products in India is expected to experience huge growth in the
coming years, according to a report on AP-Food technology. In 2009, two of the world's largest
probiotic brands, Yakult and Danone entered the Indian market hoping to take advantage of the
rapidly growing population. The joint venture between the two companies, called Yakult Danone
India (YDI), aims to educate the Indian public about probiotic products. So the focus should be
on this strategy. The market was likely to grow further in the coming years as many of the major
Indian pharmaceutical companies are in the process of developing and in-licensing probiotic
drugs, according to industry sources. Market of Probiotics is growing successfully and hence
creating grounds for products like Enterogermina to be successful.

I, After doing the survey to search the information, then doing the analysis of the data at last I
conclude that Enterogermina is at its introductory stage but because of the huge potential
market and untapped segment it is likely to succeed in near future. However presence of well
established brands in the market will make it herculean task to bring it among the top brands.

Key factors like least priced product in premium segment and brand image of the company will
help it to gain attention. Besides knowing the market potential of probiotic drugs, I have also
analyzed some areas where SANOFI AVENTIS can improve to become market leader, it will be
later mentioned in recommendation.

At last I may say that though I completed my project successfully, there was few hurdles which
will be discussed later, came while completing my project

62
 FINDINGS

o Unawareness is acting as a major obstacle in the path of growth of Enterogermina.

Doctors are still unaware about this brand.

o Mainly Consultant Physicians and Gastroenterologists are recommending probiotics but

other specialists like ENT, Dentists and Cardiologists also recommending it.

o The major prescription base of premium probiotic brands is major hospitals.

o Few doctors in east and west Delhi zones are prescribing Vials mainly, in some cases to

adults also.

o Presence of Enterogermina is less in west and north Delhi as compare to other zones.

o Demand of probiotics is less in east Delhi(less than 3 prescriptions per day) as compare

to other zones (3-7 prescription per day).

o For long duration, doctors generally prescribe low priced capsules. Here competitors like

Darolac and Bifilac are having a cutting edge.

o Doctors are somehow aware of Enterogermina capsule but still a lot of work is needed to

be done for promoting this brand.

o Premium Brands are being sold out in west and north delhi but performance of

Enterogermina is not satisfactory

63
o No schemes are available on Probiotic oral solids in the market.

RECOMMENDATIONS

o Aggressive promotion should be done.

o Every single opportunity should be encashed.

o Apart from Consultant Physicians and Gastroenterologists other specialty doctors should
also be approached with perfect follow up.

o Being the lowest priced premium brand Enterogermina it should be promoted on the
basis of price also.

o The main target should be to place Enterogermina in consideration set rather than
focusing on immediate sale.

o West and North Delhi market is full of potential so we should concentrate more there.

o In East Delhi region major hospitals should be focused at, because these hospitals
generally prefer premium brands.

o Company should launch any good scheme in probiotics as none of the brand is giving
schemes.

o Enterogermina should also be differentiated on the basis of factors like Brand Value of
Sanofi-Aventis, price and quality.

o We can more emphasize on Brand recall inputs.

64
 LIMITATIONS:

The time factor was of great hindrance in the completion of my project report. I was
working as a summer trainee in SANOFI-AVENTIS and this on the job training gave me
little time to do my project in a more descriptive manner.

 Errors in the collection of data.

• People lacked information regarding the existence of the some players

in the Pharma sector so this has caused non –availability of information
in some cases.

• Some people were hesitant to disclose the information.

• Biased response due to improper understandings of questions.

 Some of the people showed their rigid mindset.

 Some chemist was not cooperative, which led to great problem to me to collect
the data.

 Sometimes chemists were very busy due to which they did not entertained this led
to wastage of time.

 Some chemists were not interested to provide me their sales information.

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 BIBLIOGRAPHY

Books:
Marketing Management, Philip Kotler

Research Methodology By C.R Kothari

Strategic Marketing Management By Wilson Gilligan

Websites:
http://www.sanofi-aventis.com

http://www.google.com

http://www.wikipedia.com

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 Annexure
Questionnaire

1. Top 5 Probiotic Brands available at your store.(Tick any 5)

a) VSL 3 f) Darolac Caps

b) Econorm Caps g) Bifilac Caps

c) Darolac IBS h) Pre Pro Caps

d) Vibact/ Vibact DS i) Prowell Caps

e) Enterogermina Caps j) Providac Caps

k) Any Other Brand

________________

2. What are the sales per week of following brands in your shop?

a) VSL 3 f) Darolac Caps

b) Econorm Caps g) Bifilac Caps

c) Darolac IBS h) Pre Pro Caps

d) Vibact i) Prowell Caps

e) Enterogermina Caps j) Providac Caps

3. How many prescriptions you get in a day of probiotic oral solids (Caps)?

a) More than 10 b) 7-10

c) 5 -7 d) 3 - 5

e) Less than 3

4. Probiotic oral solids prescriptions usually come from:

a) Consultant Physician c) Gastroenterologists

b) Family Physician d) ENT specialist

e) Others _____________________

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5. Major antibiotic brands prescribed along with probiotic.

1. ......................................... 2.........................................
3. ......................................... 4.......................................

6. Who are the major prescribers of probiotic in your locality? (Specialty except pediatricians)

Name of Doctor Specialty Approx No. of Dose For how many Which is his/her
prescriptions usually days he/she most preferred
Prescribed prescribes brand
probiotic
1
.
2
.
3
.
4
.
5
.

7. Top 3 prescribers of Enterogermina Capsules

Name of Doctor Specialty Approx No. What is the For how many
of dose he/she days he/she
prescriptions usually prescribes
prescribes Enterogermina
1.

2.

3.

7 Any promotional scheme given by top 5 brands.

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Thank you for your kind feedback !

Name: ……………………………………

Mob. : ……………………………………

Address: …………………………………

…………………………………

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